Cash Dividend Increases
First Republic Bank (NYSE: FRC) today announced record financial results
for the quarter ended March 31, 2013.
“We had an excellent first quarter. Year-over-year core earnings per
share increased 47%,” said Jim Herbert, Chairman and Chief Executive
Officer. “Loan origination volume was our highest ever first quarter and
earnings benefitted from a much higher-than-average level of loan sales
and gains.”
Quarterly Cash Dividend Increases to $0.12 per
Share
The Bank announced an increase in its quarterly dividend to $0.12 per
share of common stock, from $0.10 per share. The first quarter cash
dividend of $0.12 per common share is payable on May 15, 2013 to
shareholders of record on May 1, 2013.
Financial Highlights
- Net income was $122.3 million, compared to $91.8 million for last
year’s first quarter. Diluted earnings per share (“EPS”) were $0.85,
compared to $0.67 for last year’s first quarter.
- Excluding the impact of purchase accounting, core net income was
$105.3 million, up 55% from last year’s first quarter. On this non-GAAP
basis, core diluted EPS were $0.72, up 47% year-over-year. (1)
- Book value per share increased by 4% during the quarter and 14%
year-over-year to $22.96.
- Asset quality remains very strong; nonperforming assets were only 14
basis points of total assets.
- Net interest margin was 3.87%, compared to 4.02% for the prior quarter.
- Excluding the impact of purchase accounting, the core net interest
margin was 3.42%, compared to 3.46% for the prior quarter. (1)
- The efficiency ratio was 53.3%, compared to 51.2% for the prior
quarter.
- Excluding the impact of purchase accounting, the core efficiency ratio
was 57.3%, compared to 56.2% for the prior quarter. (1)
- Loan originations were $3.5 billion, up 12% compared to last year’s
first quarter and our highest first quarter ever.
- Loans sold were an unusually high $1.2 billion, two times the average
2012 quarterly volume of $608 million.
- Pre-tax net gains on loan sales were $26.0 million, or 2.13% of loans
sold.
- Loans outstanding were $28.7 billion at March 31, 2013, up 20%
compared to a year ago and up 1% compared to the prior quarter, net of
loans sold.
- Deposits were $26.9 billion at March 31, 2013, up 15% compared to a
year ago and down 1% from the prior quarter.
- Wealth management assets were $35.3 billion at March 31, 2013, up 60%
compared to a year ago and up 11% from the prior quarter.
- Wealth management fees were up 71% year-over-year and 37% compared to
the prior quarter.
“During the quarter, we saw continued economic strength in our markets
as clients shifted back into real estate and equities,” said Katherine
August-deWilde, President and Chief Operating Officer. “This elevated
activity led to strong loan originations and robust growth of wealth
management assets. We took advantage of continued strong secondary
market demand for high-quality home loans and sold a record level of
longer-term, fixed-rate mortgages at very profitable levels.”
Asset Quality Remains Very Strong
The Bank’s credit quality remains strong. At March 31, 2013,
nonperforming assets were only 14 basis points of total assets.
During the first quarter of 2013, the Bank recorded a provision for loan
losses of $6.5 million. This provision is related primarily to the
growth in loans outstanding that have been originated since July 1,
2010. At March 31, 2013, the allowance related to these loans totaled
$121.0 million, or 0.60%.
Net charge-offs were $267,000 for the first quarter of 2013 (less than 1
basis point, annualized, of average loans).
Continued Capital Strength
The Bank’s Tier 1 leverage ratio at March 31, 2013 was 9.35%, compared
to 9.32% at year-end.
Strong Book Value Growth
Book value per share was $22.96 at March 31, 2013, up 14% from a year
ago and up 4% for the quarter.
Continued Franchise Development
Assets - modest net expansion
Total assets at March 31, 2013 were $35.1 billion, up 2% for the
quarter. Loans increased $4.7 billion, up 20% compared to a year ago and
up 1% compared to the prior quarter. Investment securities increased
$1.1 billion from a year ago.
Deposits - mix strong, period-end balances down
slightly
At March 31, 2013, checking and savings accounts were 89% of total
deposits, compared to 85% a year ago. The contractual rate paid on all
deposits averaged 0.22% for the first quarter of 2013, compared to 0.24%
for the prior quarter. Total deposits were up 15% compared to a year ago
and declined 1% compared to the prior quarter.
At March 31, 2013, 97% of deposits were core deposits. (2)
Wealth management expansion
Total wealth management assets were $35.3 billion at March 31, 2013, up
11% from the prior quarter. Wealth management assets include investment
management assets of $18.6 billion, brokerage assets and money market
mutual funds of $11.2 billion, and trust and custody assets of $5.5
billion.
Wealth management fees earned, including investment advisory, trust and
brokerage fees, for the first quarter of 2013 totaled $29.6 million and
were up 37% compared to the prior quarter and 71% compared to last
year’s first quarter. The increased fees reflect both growth in assets
under management along with fees following the December 2012 Luminous
Capital Holdings, LLC (“Luminous”) asset purchase.
Mortgage banking activity unusually strong
The Bank sold $1.2 billion of primarily longer-term, fixed-rate home
loans during the first quarter of 2013 and recorded net gains of $26.0
million. By comparison, during the prior quarter, the Bank sold $671
million of loans and recorded net gains of $17.7 million.
At March 31, 2013, the carrying value of mortgage servicing rights
(“MSRs”) was $23.1 million, or 43 basis points of such loans serviced.
Loans serviced for investors totaled $5.4 billion at March 31, 2013, up
49% from a year ago.
Income Statement and Key Ratio Summary
Strong core revenue growth
Total revenues were $370.3 million for the first quarter of 2013,
compared to $357.9 million for the prior quarter and $313.9 million for
last year’s first quarter, an 18% increase from a year ago.
Excluding the impact of purchase accounting, revenues were $336.0
million for the first quarter of 2013, compared to $316.9 million for
the prior quarter and $267.6 million for the first quarter of 2012, a
26% increase from a year ago. (1)
Core net interest income growth
Net interest income was $298.0 million for the first quarter of 2013,
compared to $302.3 million for the prior quarter and $281.3 million for
last year’s first quarter, a 6% increase from the first quarter a year
ago.
Excluding the impact of purchase accounting, net interest income (core
net interest income) was $263.8 million for the first quarter of 2013,
compared to $261.2 million for the prior quarter and $235.0 million for
the first quarter of 2012, up 12% from a year ago. The increase in core
net interest income was primarily due to increases in the average
balances of loans and investment securities as well as lower deposit
costs. (1)
Net interest margin
The Bank’s net interest margin was 3.87% for the first quarter of 2013,
compared to 4.02% for the prior quarter and 4.39% for the first quarter
a year ago.
Excluding the impact of purchase accounting, the net interest margin
(core net interest margin) was 3.42% for the first quarter of 2013,
compared to 3.46% for the prior quarter and 3.64% for the first quarter
a year ago. (1) The core net interest margin declined
slightly compared to the prior quarter, primarily due to declines in
contractual loan yields.
Noninterest income
Noninterest income for the first quarter of 2013 was $72.3 million, up
$16.7 million, or 30%, from the prior quarter and up $39.6 million from
the first quarter a year ago. These increases were primarily due to
increases in wealth management fees and gain on sale of loans.
Noninterest expense
Noninterest expense for the first quarter of 2013 was $197.4 million,
compared to $183.1 million for the prior quarter and $164.8 million for
the first quarter a year ago, an 8% increase over the prior quarter and
a 20% increase year-over-year.
Noninterest expense has grown primarily due to increased personnel
costs, increased expenses related to tax credit investments and
initiation of the amortization of intangibles from the Luminous asset
purchase.
Efficiency ratio
The Bank’s efficiency ratio was 53.3% for the first quarter of 2013,
compared to 51.2% for the prior quarter and 52.5% for the first quarter
a year ago.
Excluding the impact of purchase accounting, the Bank’s core efficiency
ratio was 57.3% for the first quarter of 2013, compared to 56.2% for the
prior quarter and 59.6% for the first quarter a year ago. (1)
Income tax rate
The Bank’s effective tax rate for 2013 is expected to be 26.5%, compared
to 30.4% for 2012. The decline in the effective tax rate results from
the steady increase in tax-exempt securities, bank-owned life insurance,
tax credit investments and tax-advantaged loans.
_________
(1) See non-GAAP reconciliation under section “Use of
Non-GAAP Financial Measures.”
(2) Core deposits exclude CDs greater than $250,000.
Conference Call Details
First Republic Bank’s first quarter 2013 earnings conference call is
scheduled for April 15, 2013 at 11:00 a.m. PT / 2:00 p.m. ET. To listen
to the live call by telephone, please dial (855) 224-3902 approximately
10 minutes prior to the start time (to allow time for registration) and
use conference ID #29911559. International callers should dial (734)
823-3244. The call will also be broadcast live over the Internet and can
be accessed in the Investor Relations section of First Republic’s
website at www.firstrepublic.com.
To listen to the live webcast, please visit the site at least 15 minutes
prior to the start of the call to register, download and install any
necessary audio software. A replay of the call will also be available
for 90 days on the website. For those unable to participate in the live
presentation, a replay will be available beginning April 15, 2013, at
2:00 p.m. PT / 5:00 p.m. ET, through April 22, 2013, at 8:59 p.m. PT /
11:59 p.m. ET. To access the replay, dial (855) 859-2056 (U.S.) and use
conference ID #29911559. International callers should dial (404)
537-3406 and enter the same conference ID number. The Bank’s press
releases are available after release on the Bank’s website at www.firstrepublic.com.
About First Republic Bank
First Republic Bank (“First Republic” or the “Bank”) and its
subsidiaries provide private banking, private business banking and
private wealth management. Founded in 1985, First Republic specializes
in exceptional, relationship-based service offered through preferred
banking or wealth management offices primarily in San Francisco, Palo
Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland,
Palm Beach, Boston, Greenwich and New York City. First Republic offers a
complete line of banking products for individuals and businesses,
including deposit services, as well as residential, commercial and
personal loans. First Republic is a component of the S&P Total Market
Index, the Wilshire 5000 Total Market IndexSM, the Russell
1000®, Russell 3000® and Russell Global indices
and six Dow Jones indices. More information is available on the Bank’s
website at www.firstrepublic.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements in this press release that are not historical facts are
hereby identified as “forward-looking statements” for the purpose of the
safe harbor provided by Section 21E of the Securities Exchange Act of
1934. Any statements about our expectations, beliefs, plans,
predictions, forecasts, objectives, assumptions or future events or
performance are not historical facts and may be forward-looking. These
statements are often, but not always, made through the use of words or
phrases such as “anticipates,” “believes,” “can,” “could,” “may,”
“predicts,” “potential,” “should,” “will,” “estimates,” “plans,”
“projects,” “continuing,” “ongoing,” “expects,” “intends” and similar
words or phrases and include statements about economic performance in
our markets, growth in our loan originations and wealth management
assets, and our projected tax rate. Accordingly, these statements are
only predictions and involve estimates, known and unknown risks,
assumptions and uncertainties that could cause actual results to differ
materially from those expressed in them. Factors that could cause actual
results to differ from those discussed in the forward-looking statements
include, but are not limited to: our ability to compete for banking and
wealth management customers; earthquakes and other natural disasters in
our markets; changes in interest rates; our ability to maintain high
underwriting standards; economic conditions in our markets; conditions
in financial markets and economic conditions generally; regulatory
restrictions on our operations and current or future
legislative or regulatory changes affecting the banking and investment
management industries. For a discussion of these and other risks and
uncertainties, see First Republic’s FDIC filings, including, but not
limited to, the risk factors in First Republic’s Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. These filings are available in
the Investor Relations section of our website. All forward-looking
statements are necessarily only estimates of future results, and there
can be no assurance that actual results will not differ materially from
expectations, and, therefore, you are cautioned not to place undue
reliance on such statements. Further, any forward-looking statement
speaks only as of the date on which it is made, and we undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
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|
|
|
|
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CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
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December 31,
|
|
(in thousands, except per share amounts)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
$
|
288,093
|
|
|
|
$
|
279,674
|
|
|
|
$
|
294,763
|
|
Investments
|
|
|
|
35,479
|
|
|
|
28,859
|
|
|
|
33,278
|
|
Cash equivalents
|
|
|
|
174
|
|
|
|
623
|
|
|
|
546
|
|
Total interest income
|
|
|
|
323,746
|
|
|
|
309,156
|
|
|
|
328,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
11,010
|
|
|
|
14,987
|
|
|
|
11,732
|
|
Borrowings
|
|
|
|
14,687
|
|
|
|
12,901
|
|
|
|
14,521
|
|
Total interest expense
|
|
|
|
25,697
|
|
|
|
27,888
|
|
|
|
26,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
298,049
|
|
|
|
281,268
|
|
|
|
302,334
|
|
Provision for loan losses
|
|
|
|
6,478
|
|
|
|
14,852
|
|
|
|
17,204
|
|
Net interest income after provision for loan losses
|
|
|
|
291,571
|
|
|
|
266,416
|
|
|
|
285,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
Investment advisory fees
|
|
|
|
25,099
|
|
|
|
12,699
|
|
|
|
16,305
|
|
Brokerage and investment fees
|
|
|
|
2,391
|
|
|
|
2,765
|
|
|
|
2,904
|
|
Trust fees
|
|
|
|
2,060
|
|
|
|
1,773
|
|
|
|
2,381
|
|
Foreign exchange fee income
|
|
|
|
3,087
|
|
|
|
2,421
|
|
|
|
3,147
|
|
Deposit customer fees
|
|
|
|
4,644
|
|
|
|
3,281
|
|
|
|
3,746
|
|
Gain on sale of loans
|
|
|
|
25,990
|
|
|
|
3,809
|
|
|
|
17,721
|
|
Loan servicing fees, net
|
|
|
|
336
|
|
|
|
(1,904
|
)
|
|
|
217
|
|
Loan and related fees
|
|
|
|
1,912
|
|
|
|
1,483
|
|
|
|
1,829
|
|
Income from investments in life insurance
|
|
|
|
5,884
|
|
|
|
5,371
|
|
|
|
6,212
|
|
Other income
|
|
|
|
865
|
|
|
|
947
|
|
|
|
1,149
|
|
Total noninterest income
|
|
|
|
72,268
|
|
|
|
32,645
|
|
|
|
55,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and related benefits
|
|
|
|
101,884
|
|
|
|
82,507
|
|
|
|
88,412
|
|
Occupancy
|
|
|
|
22,088
|
|
|
|
19,895
|
|
|
|
21,834
|
|
Information systems
|
|
|
|
17,823
|
|
|
|
16,174
|
|
|
|
19,745
|
|
Tax credit investments
|
|
|
|
10,900
|
|
|
|
5,250
|
|
|
|
5,754
|
|
Amortization of intangibles
|
|
|
|
6,856
|
|
|
|
5,288
|
|
|
|
4,927
|
|
FDIC and other deposit assessments
|
|
|
|
6,827
|
|
|
|
5,400
|
|
|
|
6,684
|
|
Advertising and marketing
|
|
|
|
5,803
|
|
|
|
5,962
|
|
|
|
6,061
|
|
Professional fees
|
|
|
|
3,713
|
|
|
|
4,278
|
|
|
|
4,854
|
|
Other expenses
|
|
|
|
21,540
|
|
|
|
20,001
|
|
|
|
24,873
|
|
Total noninterest expense
|
|
|
|
197,434
|
|
|
|
164,755
|
|
|
|
183,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
|
166,405
|
|
|
|
134,306
|
|
|
|
157,597
|
|
Provision for income taxes
|
|
|
|
44,097
|
|
|
|
41,635
|
|
|
|
47,486
|
|
Net income before noncontrolling interests
|
|
|
|
122,308
|
|
|
|
92,671
|
|
|
|
110,111
|
|
Less: Net income from noncontrolling interests
|
|
|
|
—
|
|
|
|
913
|
|
|
|
—
|
|
First Republic Bank net income
|
|
|
|
122,308
|
|
|
|
91,758
|
|
|
|
110,111
|
|
Dividends on preferred stock
|
|
|
|
7,776
|
|
|
|
2,451
|
|
|
|
6,534
|
|
Net income available to common shareholders
|
|
|
|
$
|
114,532
|
|
|
|
$
|
89,307
|
|
|
|
$
|
103,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
|
$
|
0.88
|
|
|
|
$
|
0.69
|
|
|
|
$
|
0.79
|
|
Diluted earnings per common share
|
|
|
|
$
|
0.85
|
|
|
|
$
|
0.67
|
|
|
|
$
|
0.77
|
|
Dividends per common share
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - basic
|
|
|
|
130,846
|
|
|
|
129,498
|
|
|
|
130,614
|
|
Weighted average shares - diluted
|
|
|
|
135,252
|
|
|
|
133,621
|
|
|
|
134,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
552,837
|
|
|
|
$
|
602,264
|
|
|
|
$
|
1,429,286
|
|
|
Securities purchased under agreements to resell
|
|
|
|
100
|
|
|
|
30,901
|
|
|
|
12,973
|
|
|
Investment securities available-for-sale
|
|
|
|
1,382,138
|
|
|
|
960,433
|
|
|
|
682,835
|
|
|
Investment securities held-to-maturity
|
|
|
|
2,624,120
|
|
|
|
2,545,189
|
|
|
|
2,209,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Single family (1-4 units)
|
|
|
|
16,654,668
|
|
|
|
16,672,924
|
|
|
|
14,175,779
|
|
|
Home equity lines of credit
|
|
|
|
1,795,775
|
|
|
|
1,887,604
|
|
|
|
1,826,061
|
|
|
Multifamily (5+ units)
|
|
|
|
3,278,219
|
|
|
|
3,006,946
|
|
|
|
2,569,780
|
|
|
Commercial real estate
|
|
|
|
2,932,676
|
|
|
|
2,909,201
|
|
|
|
2,629,595
|
|
|
Single family construction
|
|
|
|
250,587
|
|
|
|
234,213
|
|
|
|
198,240
|
|
|
Multifamily/commercial construction
|
|
|
|
166,027
|
|
|
|
171,268
|
|
|
|
110,193
|
|
|
Commercial business loans
|
|
|
|
2,608,651
|
|
|
|
2,600,151
|
|
|
|
1,799,668
|
|
|
Other secured
|
|
|
|
356,688
|
|
|
|
391,833
|
|
|
|
315,014
|
|
|
Unsecured loans and lines of credit
|
|
|
|
246,198
|
|
|
|
279,515
|
|
|
|
177,643
|
|
|
Stock secured
|
|
|
|
151,156
|
|
|
|
145,460
|
|
|
|
79,005
|
|
|
Total unpaid principal balance
|
|
|
|
28,440,645
|
|
|
|
28,299,115
|
|
|
|
23,880,978
|
|
|
Net unaccreted discount
|
|
|
|
(301,549
|
)
|
|
|
(332,404
|
)
|
|
|
(455,885
|
)
|
|
Net deferred fees and costs
|
|
|
|
18,356
|
|
|
|
20,048
|
|
|
|
13,456
|
|
|
Allowance for loan losses
|
|
|
|
(136,100
|
)
|
|
|
(129,889
|
)
|
|
|
(82,418
|
)
|
|
Loans, net
|
|
|
|
28,021,352
|
|
|
|
27,856,870
|
|
|
|
23,356,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale
|
|
|
|
230,578
|
|
|
|
204,631
|
|
|
|
53,184
|
|
|
Investments in life insurance
|
|
|
|
707,775
|
|
|
|
701,672
|
|
|
|
591,397
|
|
|
Prepaid expenses and other assets
|
|
|
|
650,296
|
|
|
|
575,741
|
|
|
|
695,575
|
|
|
Tax credit investments
|
|
|
|
478,616
|
|
|
|
484,548
|
|
|
|
389,000
|
|
|
Premises, equipment and leasehold improvements, net
|
|
|
|
153,365
|
|
|
|
142,201
|
|
|
|
123,439
|
|
|
Goodwill
|
|
|
|
106,549
|
|
|
|
106,549
|
|
|
|
24,604
|
|
|
Other intangible assets
|
|
|
|
152,036
|
|
|
|
158,892
|
|
|
|
129,286
|
|
|
Mortgage servicing rights
|
|
|
|
23,142
|
|
|
|
17,786
|
|
|
|
17,466
|
|
|
Other real estate owned
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,348
|
|
|
Total Assets
|
|
|
|
$
|
35,082,904
|
|
|
|
$
|
34,387,677
|
|
|
|
$
|
29,718,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts
|
|
|
|
$
|
7,344,677
|
|
|
|
$
|
8,544,472
|
|
|
|
$
|
6,275,752
|
|
|
Interest-bearing checking accounts
|
|
|
|
6,297,551
|
|
|
|
5,408,325
|
|
|
|
3,793,085
|
|
|
Money Market (MM) checking accounts
|
|
|
|
4,145,038
|
|
|
|
4,104,791
|
|
|
|
3,583,467
|
|
|
MM savings and passbooks
|
|
|
|
6,242,098
|
|
|
|
6,064,629
|
|
|
|
6,030,096
|
|
|
Certificates of deposit
|
|
|
|
2,823,750
|
|
|
|
2,966,030
|
|
|
|
3,572,561
|
|
|
Total deposits
|
|
|
|
26,853,114
|
|
|
|
27,088,247
|
|
|
|
23,254,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
810,000
|
|
|
|
75,000
|
|
|
|
—
|
|
|
Long-term debt
|
|
|
|
3,450,000
|
|
|
|
3,150,000
|
|
|
|
3,115,032
|
|
|
Debt related to variable interest entity
|
|
|
|
53,143
|
|
|
|
56,450
|
|
|
|
60,030
|
|
|
Other liabilities
|
|
|
|
398,741
|
|
|
|
619,436
|
|
|
|
425,491
|
|
|
Total Liabilities
|
|
|
|
31,564,998
|
|
|
|
30,989,133
|
|
|
|
26,855,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
First Republic Bank shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
499,525
|
|
|
|
499,525
|
|
|
|
199,525
|
|
|
Common stock
|
|
|
|
1,315
|
|
|
|
1,313
|
|
|
|
1,302
|
|
|
Additional paid-in capital
|
|
|
|
2,035,558
|
|
|
|
2,027,578
|
|
|
|
2,019,194
|
|
|
Retained earnings
|
|
|
|
953,284
|
|
|
|
838,752
|
|
|
|
583,757
|
|
|
Accumulated other comprehensive income
|
|
|
|
28,224
|
|
|
|
31,376
|
|
|
|
12,895
|
|
|
Total First Republic Bank shareholders’ equity
|
|
|
|
3,517,906
|
|
|
|
3,398,544
|
|
|
|
2,816,673
|
|
|
Noncontrolling interests
|
|
|
|
—
|
|
|
|
—
|
|
|
|
46,800
|
|
|
Total Equity
|
|
|
|
3,517,906
|
|
|
|
3,398,544
|
|
|
|
2,863,473
|
|
|
Total Liabilities and Equity
|
|
|
|
$
|
35,082,904
|
|
|
|
$
|
34,387,677
|
|
|
|
$
|
29,718,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
Three Months
|
|
|
|
|
|
|
Ended
|
|
|
|
Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans originated
|
|
|
|
$
|
3,545,858
|
|
|
|
|
$
|
3,156,526
|
|
|
|
|
$
|
4,301,992
|
|
|
|
Net income to average assets (3) |
|
|
|
1.42
|
%
|
|
|
|
1.29
|
%
|
|
|
|
1.30
|
%
|
|
|
Net income available to common shareholders to average common equity (3) |
|
|
|
15.59
|
%
|
|
|
|
13.86
|
%
|
|
|
|
14.27
|
%
|
|
|
Dividend payout ratio
|
|
|
|
—
|
%
|
(4)
|
|
|
—
|
%
|
|
|
|
26.0
|
%
|
(4)
|
|
Efficiency ratio (5) |
|
|
|
53.3
|
%
|
|
|
|
52.5
|
%
|
|
|
|
51.2
|
%
|
|
|
Efficiency ratio (non-GAAP) (5), (6) |
|
|
|
57.3
|
%
|
|
|
|
59.6
|
%
|
|
|
|
56.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields/Rates (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
0.23
|
%
|
|
|
|
0.27
|
%
|
|
|
|
0.25
|
%
|
|
|
Investment securities (7), (8) |
|
|
|
5.07
|
%
|
|
|
|
5.61
|
%
|
|
|
|
5.46
|
%
|
|
|
Loans (7), (9) |
|
|
|
4.11
|
%
|
|
|
|
4.88
|
%
|
|
|
|
4.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
|
|
|
4.19
|
%
|
|
|
|
4.81
|
%
|
|
|
|
4.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
|
|
0.01
|
%
|
|
|
|
0.02
|
%
|
|
|
|
0.01
|
%
|
|
|
Money market checking and savings
|
|
|
|
0.11
|
%
|
|
|
|
0.21
|
%
|
|
|
|
0.12
|
%
|
|
|
CDs (9) |
|
|
|
1.09
|
%
|
|
|
|
1.04
|
%
|
|
|
|
1.08
|
%
|
|
|
Total deposits
|
|
|
|
0.17
|
%
|
|
|
|
0.26
|
%
|
|
|
|
0.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
0.21
|
%
|
|
|
|
0.00
|
%
|
|
|
|
0.29
|
%
|
|
|
Long-term FHLB advances
|
|
|
|
1.79
|
%
|
|
|
|
1.92
|
%
|
|
|
|
1.80
|
%
|
|
|
Other long-term debt (9) |
|
|
|
1.73
|
%
|
|
|
|
2.62
|
%
|
|
|
|
1.85
|
%
|
|
|
Total borrowings
|
|
|
|
1.47
|
%
|
|
|
|
1.95
|
%
|
|
|
|
1.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
|
0.34
|
%
|
|
|
|
0.44
|
%
|
|
|
|
0.35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
|
3.85
|
%
|
|
|
|
4.37
|
%
|
|
|
|
4.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
3.87
|
%
|
|
|
|
4.39
|
%
|
|
|
|
4.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (non-GAAP) (6) |
|
|
|
3.42
|
%
|
|
|
|
3.64
|
%
|
|
|
|
3.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
Ratios are annualized.
|
|
(4)
|
|
|
|
The fourth quarter of 2012 dividend of $0.10 per share was
declared and paid early in December, 2012, which resulted in no
dividend payment during the first quarter of 2013.
|
|
(5)
|
|
|
|
Efficiency ratio is the ratio of noninterest expense to the sum of
net interest income and noninterest income.
|
|
(6)
|
|
|
|
For a reconciliation of these ratios to the equivalent GAAP
ratios, see “Use of Non-GAAP Financial Measures.”
|
|
(7)
|
|
|
|
Yield is calculated on a tax-equivalent basis.
|
|
(8)
|
|
|
|
Includes FHLB stock and securities purchased under agreements to
resell.
|
|
(9)
|
|
|
|
Yield includes accretion/amortization of purchase accounting
discounts/premiums.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents loans sold and gain on sale of loans
for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Mortgage Loan Sales
|
|
|
|
|
|
|
|
|
|
|
|
Loans sold:
|
|
|
|
|
|
|
|
|
|
|
|
Agency
|
|
|
|
$
|
165,281
|
|
|
|
$
|
116,240
|
|
|
|
$
|
242,073
|
|
|
Non-agency
|
|
|
|
1,052,859
|
|
|
|
435,810
|
|
|
|
429,241
|
|
|
Total loans sold
|
|
|
|
$
|
1,218,140
|
|
|
|
$
|
552,050
|
|
|
|
$
|
671,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of loans:
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
|
$
|
25,990
|
|
|
|
$
|
3,809
|
|
|
|
$
|
17,721
|
|
|
Gain as a percentage of loans sold
|
|
|
|
2.13
|
%
|
|
|
0.69
|
%
|
|
|
2.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table separates our loan portfolio as of March 31, 2013
between loans acquired on July 1, 2010 and loans originated since July
1, 2010:
|
|
|
|
|
Composition of Loan Portfolio
|
|
|
|
|
|
Loans acquired
|
|
|
Loans originated
|
|
|
Total loans at
|
|
|
|
|
|
on July 1,
|
|
|
since July 1,
|
|
|
March 31,
|
|
($ in thousands)
|
|
|
|
2010
|
|
|
2010
|
|
|
2013
|
|
Single family (1-4 units)
|
|
|
|
$
|
4,826,175
|
|
|
|
$
|
11,828,493
|
|
|
|
$
|
16,654,668
|
|
|
Home equity lines of credit
|
|
|
|
900,729
|
|
|
|
895,046
|
|
|
|
1,795,775
|
|
|
Multifamily (5+ units)
|
|
|
|
724,382
|
|
|
|
2,553,837
|
|
|
|
3,278,219
|
|
|
Commercial real estate
|
|
|
|
1,152,621
|
|
|
|
1,780,055
|
|
|
|
2,932,676
|
|
|
Single family construction
|
|
|
|
10,870
|
|
|
|
239,717
|
|
|
|
250,587
|
|
|
Multifamily/commercial construction
|
|
|
|
4,021
|
|
|
|
162,006
|
|
|
|
166,027
|
|
|
Commercial business loans
|
|
|
|
430,048
|
|
|
|
2,178,603
|
|
|
|
2,608,651
|
|
|
Other secured
|
|
|
|
48,784
|
|
|
|
307,904
|
|
|
|
356,688
|
|
|
Unsecured loans and lines of credit
|
|
|
|
46,471
|
|
|
|
199,727
|
|
|
|
246,198
|
|
|
Stock secured
|
|
|
|
12,907
|
|
|
|
138,249
|
|
|
|
151,156
|
|
|
Total unpaid principal balance
|
|
|
|
8,157,008
|
|
|
|
20,283,637
|
|
|
|
28,440,645
|
|
|
Net unaccreted discount
|
|
|
|
(300,888
|
)
|
|
|
(661
|
)
|
|
|
(301,549
|
)
|
|
Net deferred fees and costs
|
|
|
|
(7,803
|
)
|
|
|
26,159
|
|
|
|
18,356
|
|
|
Allowance for loan losses
|
|
|
|
(15,080
|
)
|
|
|
(121,020
|
)
|
|
|
(136,100
|
)
|
|
Loans, net
|
|
|
|
$
|
7,833,237
|
|
|
|
$
|
20,188,115
|
|
|
|
$
|
28,021,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
(in thousands, except per share amounts)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Book Value
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares of common stock outstanding
|
|
|
|
131,481
|
|
|
|
131,273
|
|
|
|
130,236
|
|
|
Book value per common share
|
|
|
|
$
|
22.96
|
|
|
|
$
|
22.08
|
|
|
|
$
|
20.10
|
|
|
Tangible book value per common share
|
|
|
|
$
|
20.99
|
|
|
|
$
|
20.06
|
|
|
|
$
|
18.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio
|
|
|
|
9.35
|
%
|
|
|
9.32
|
%
|
|
|
9.48
|
%
|
|
Tier 1 common equity ratio (10) |
|
|
|
11.43
|
%
|
|
|
11.13
|
%
|
|
|
12.73
|
%
|
|
Tier 1 risk-based capital ratio
|
|
|
|
13.52
|
%
|
|
|
13.27
|
%
|
|
|
14.01
|
%
|
|
Total risk-based capital ratio
|
|
|
|
14.13
|
%
|
|
|
13.86
|
%
|
|
|
14.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10) Tier 1 common equity ratio represents common equity
less goodwill and intangible assets divided by risk-weighted assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
($ in millions)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Assets Under Management
|
|
|
|
|
|
|
|
|
|
|
|
First Republic Investment Management
|
|
|
|
$
|
18,573
|
|
|
|
$
|
17,000
|
|
|
|
$
|
8,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage and Investment:
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage
|
|
|
|
10,357
|
|
|
|
8,810
|
|
|
|
7,777
|
|
Money Market Mutual Funds
|
|
|
|
870
|
|
|
|
852
|
|
|
|
666
|
|
Total Brokerage and Investment
|
|
|
|
11,227
|
|
|
|
9,662
|
|
|
|
8,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust Company:
|
|
|
|
|
|
|
|
|
|
|
|
Trust
|
|
|
|
2,326
|
|
|
|
2,157
|
|
|
|
2,089
|
|
Custody
|
|
|
|
3,148
|
|
|
|
2,863
|
|
|
|
2,565
|
|
Total Trust Company
|
|
|
|
5,474
|
|
|
|
5,020
|
|
|
|
4,654
|
|
Total Wealth Management Assets
|
|
|
|
35,274
|
|
|
|
31,682
|
|
|
|
22,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for investors
|
|
|
|
5,433
|
|
|
|
4,581
|
|
|
|
3,651
|
|
Total fee-based assets
|
|
|
|
$
|
40,707
|
|
|
|
$
|
36,263
|
|
|
|
$
|
25,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Nonperforming assets:
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
|
|
|
$
|
49,873
|
|
|
|
$
|
49,153
|
|
|
|
$
|
27,480
|
|
|
Other real estate owned
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,348
|
|
|
Total nonperforming assets
|
|
|
|
$
|
49,873
|
|
|
|
$
|
49,153
|
|
|
|
$
|
31,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
|
|
|
|
0.14
|
%
|
|
|
0.14
|
%
|
|
|
0.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days or more past due
|
|
|
|
$
|
5,959
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured accruing loans
|
|
|
|
$
|
18,223
|
|
|
|
$
|
12,398
|
|
|
|
$
|
5,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
2012
|
|
2012
|
|
Net loan charge-offs to allowance for loan losses
|
|
|
|
$
|
267
|
|
|
$
|
547
|
|
|
$
|
315
|
|
|
Net loan charge-offs to average total loans (annualized)
|
|
|
|
0.00
|
%
|
|
0.01
|
%
|
|
0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheet
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents
|
|
|
|
$
|
307,562
|
|
|
|
$
|
912,075
|
|
|
|
$
|
880,708
|
|
Investment securities (11) |
|
|
|
4,011,375
|
|
|
|
2,979,828
|
|
|
|
3,513,251
|
|
Loans (12) |
|
|
|
28,439,583
|
|
|
|
22,996,300
|
|
|
|
27,232,372
|
|
Total interest-earning assets
|
|
|
|
32,758,520
|
|
|
|
26,888,203
|
|
|
|
31,626,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets
|
|
|
|
2,095,687
|
|
|
|
1,733,236
|
|
|
|
1,967,146
|
|
Total Assets
|
|
|
|
$
|
34,854,207
|
|
|
|
$
|
28,621,439
|
|
|
|
$
|
33,593,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
|
|
$
|
13,237,987
|
|
|
|
$
|
9,749,583
|
|
|
|
$
|
13,351,861
|
|
Money market checking and savings
|
|
|
|
10,629,230
|
|
|
|
9,254,760
|
|
|
|
10,095,930
|
|
CDs (12) |
|
|
|
2,894,059
|
|
|
|
3,759,487
|
|
|
|
3,090,586
|
|
Total deposits
|
|
|
|
26,761,276
|
|
|
|
22,763,830
|
|
|
|
26,538,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
|
832,200
|
|
|
|
2,197
|
|
|
|
10,804
|
|
Long-term FHLB advances
|
|
|
|
3,165,556
|
|
|
|
2,528,572
|
|
|
|
3,150,000
|
|
Other long term-debt (12) |
|
|
|
55,406
|
|
|
|
127,788
|
|
|
|
59,257
|
|
Total borrowings
|
|
|
|
4,053,162
|
|
|
|
2,658,557
|
|
|
|
3,220,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
|
30,814,438
|
|
|
|
25,422,387
|
|
|
|
29,758,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities
|
|
|
|
561,572
|
|
|
|
392,820
|
|
|
|
533,589
|
|
Preferred equity
|
|
|
|
499,525
|
|
|
|
147,887
|
|
|
|
413,112
|
|
Common equity
|
|
|
|
2,978,672
|
|
|
|
2,591,806
|
|
|
|
2,888,338
|
|
Noncontrolling interests
|
|
|
|
—
|
|
|
|
66,539
|
|
|
|
—
|
|
Total Liabilities and Equity
|
|
|
|
$
|
34,854,207
|
|
|
|
$
|
28,621,439
|
|
|
|
$
|
33,593,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11) Includes FHLB stock and securities purchased under
agreements to resell.
|
|
(12) Average balances are presented net of purchase
accounting discounts or premiums.
|
|
|
|
|
Purchase Accounting Accretion and Amortization
The following table presents the impact of purchase accounting from the
Bank’s re-establishment as an independent institution for the periods
indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Accretion/amortization to net interest income:
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
$
|
30,834
|
|
|
|
$
|
38,153
|
|
|
|
$
|
36,746
|
|
Deposits
|
|
|
|
3,440
|
|
|
|
7,458
|
|
|
|
4,342
|
|
Borrowings
|
|
|
|
—
|
|
|
|
680
|
|
|
|
—
|
|
Total
|
|
|
|
$
|
34,274
|
|
|
|
$
|
46,291
|
|
|
|
$
|
41,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
Loan commitments
|
|
|
|
$
|
—
|
|
|
|
$
|
69
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization to noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
$
|
4,769
|
|
|
|
$
|
5,288
|
|
|
|
$
|
4,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
Our accounting and reporting policies conform to generally accepted
accounting principles in the United States (“GAAP”) and the prevailing
practices in the banking industry. However, due to the application of
purchase accounting from the Bank’s re-establishment as an independent
institution, management uses certain non-GAAP measures and ratios that
exclude the impact of these items to evaluate our performance, including
net income, earnings per share, net interest margin and the efficiency
ratio.
Our net income, earnings per share, net interest margin and efficiency
ratio were significantly impacted by accretion and amortization of the
fair value adjustments recorded in purchase accounting from the Bank’s
re-establishment as an independent institution. The accretion and
amortization affect our net income, earnings per share and certain
operating ratios as we accrete loan discounts to interest income;
accrete discounts on loan commitments to noninterest income; amortize
premiums on liabilities such as CDs and subordinated notes to interest
expense; and amortize intangible assets to noninterest expense.
In December 2012, First Republic completed the purchase of substantially
all of the assets of Luminous. The amortization of intangible assets
from this transaction is not an adjustment in the calculation of the
Bank’s non-GAAP measures in 2013.
We believe these non-GAAP measures and ratios, when taken together with
the corresponding GAAP measures and ratios, provide meaningful
supplemental information regarding our performance. Our management uses,
and believes that investors benefit from referring to, these non-GAAP
measures and ratios in assessing our operating results and related
trends and when planning and forecasting future periods. However, these
non-GAAP measures and ratios should be considered in addition to, and
not as a substitute for or preferable to, ratios prepared in accordance
with GAAP. In the tables below, we have provided a reconciliation of,
where applicable, the most comparable GAAP financial measures and ratios
to the non-GAAP financial measures and ratios, or a reconciliation of
the non-GAAP calculation of the financial measure for the periods
indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
(in thousands, except per share amounts)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Non-GAAP earnings
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
122,308
|
|
|
|
$
|
91,758
|
|
|
|
$
|
110,111
|
|
|
Accretion / amortization added to net interest income
|
|
|
|
(34,274
|
)
|
|
|
(46,291
|
)
|
|
|
(41,088
|
)
|
|
Accretion added to noninterest income
|
|
|
|
—
|
|
|
|
(69
|
)
|
|
|
—
|
|
|
Amortization of intangible assets
|
|
|
|
4,769
|
|
|
|
5,288
|
|
|
|
4,927
|
|
|
Add back tax impact of the above items
|
|
|
|
12,540
|
|
|
|
17,456
|
|
|
|
15,368
|
|
|
Non-GAAP net income
|
|
|
|
105,343
|
|
|
|
68,142
|
|
|
|
89,318
|
|
|
Dividends on preferred stock
|
|
|
|
(7,776
|
)
|
|
|
(2,451
|
)
|
|
|
(6,534
|
)
|
|
Non-GAAP net income available to common shareholders
|
|
|
|
$
|
97,567
|
|
|
|
$
|
65,691
|
|
|
|
$
|
82,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per common share-diluted
|
|
|
|
$
|
0.85
|
|
|
|
$
|
0.67
|
|
|
|
$
|
0.77
|
|
|
Impact of purchase accounting, net of tax
|
|
|
|
(0.13
|
)
|
|
|
(0.18
|
)
|
|
|
(0.16
|
)
|
|
Non-GAAP earnings per common share-diluted
|
|
|
|
$
|
0.72
|
|
|
|
$
|
0.49
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted common shares outstanding
|
|
|
|
135,252
|
|
|
|
133,621
|
|
|
|
134,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Net interest margin
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
298,049
|
|
|
|
$
|
281,268
|
|
|
|
$
|
302,334
|
|
|
Add: Tax-equivalent adjustment
|
|
|
|
19,327
|
|
|
|
15,043
|
|
|
|
18,121
|
|
|
Net interest income (tax-equivalent basis)
|
|
|
|
317,376
|
|
|
|
296,311
|
|
|
|
320,455
|
|
|
Less: Accretion / amortization
|
|
|
|
(34,274
|
)
|
|
|
(46,291
|
)
|
|
|
(41,088
|
)
|
|
Non-GAAP net interest income (tax-equivalent basis)
|
|
|
|
$
|
283,102
|
|
|
|
$
|
250,020
|
|
|
|
$
|
279,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets
|
|
|
|
$
|
32,758,520
|
|
|
|
$
|
26,888,203
|
|
|
|
$
|
31,626,331
|
|
|
Add: Average unamortized loan discounts
|
|
|
|
323,068
|
|
|
|
481,015
|
|
|
|
358,084
|
|
|
Average interest-earning assets (non-GAAP)
|
|
|
|
$
|
33,081,588
|
|
|
|
$
|
27,369,218
|
|
|
|
$
|
31,984,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin–reported
|
|
|
|
3.87
|
%
|
|
|
4.39
|
%
|
|
|
4.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (non-GAAP)
|
|
|
|
3.42
|
%
|
|
|
3.64
|
%
|
|
|
3.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Three Months
|
|
|
|
|
|
Ended
|
|
|
Ended
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
($ in thousands)
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
Efficiency ratio
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
|
$
|
298,049
|
|
|
|
$
|
281,268
|
|
|
|
$
|
302,334
|
|
|
Less: Accretion / amortization
|
|
|
|
(34,274
|
)
|
|
|
(46,291
|
)
|
|
|
(41,088
|
)
|
|
Net interest income (non-GAAP)
|
|
|
|
$
|
263,775
|
|
|
|
$
|
234,977
|
|
|
|
$
|
261,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
|
$
|
72,268
|
|
|
|
$
|
32,645
|
|
|
|
$
|
55,611
|
|
|
Less: Accretion of discounts on loan commitments
|
|
|
|
—
|
|
|
|
(69
|
)
|
|
|
—
|
|
|
Noninterest income (non-GAAP)
|
|
|
|
$
|
72,268
|
|
|
|
$
|
32,576
|
|
|
|
$
|
55,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
$
|
370,317
|
|
|
|
$
|
313,913
|
|
|
|
$
|
357,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue (non-GAAP)
|
|
|
|
$
|
336,043
|
|
|
|
$
|
267,553
|
|
|
|
$
|
316,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
|
|
|
|
$
|
197,434
|
|
|
|
$
|
164,755
|
|
|
|
$
|
183,144
|
|
|
Less: Intangible amortization
|
|
|
|
(4,769
|
)
|
|
|
(5,288
|
)
|
|
|
(4,927
|
)
|
|
Noninterest expense (non-GAAP)
|
|
|
|
$
|
192,665
|
|
|
|
$
|
159,467
|
|
|
|
$
|
178,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
|
|
|
|
53.3
|
%
|
|
|
52.5
|
%
|
|
|
51.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP)
|
|
|
|
57.3
|
%
|
|
|
59.6
|
%
|
|
|
56.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
